House File 2322 - Introduced HOUSE FILE 2322 BY THOMAS and BEARINGER A BILL FOR An Act providing for certain moneys generated from the 1 corporate income tax, including by providing for the 2 transfer of such moneys to an Iowa conservation, outdoor 3 recreation, and economy fund and the allocation from 4 that fund to specific funds relating to soil and water 5 conservation, natural resources, and the environment and 6 making appropriations. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5364HH (5) 85 da/rj

H.F. 2322 Section 1. NEW SECTION . 161A.77 Soil and water conservation 1 cost-share fund. 2 1. A soil and water conservation cost-share fund is created 3 within the state treasury under the control of the division. 4 2. The fund is composed of moneys from public or private 5 sources, including all of the following: 6 a. Moneys appropriated from the Iowa conservation, outdoor 7 recreation, and economy fund created in section 461.41. 8 b. Moneys available to and obtained or accepted by the 9 division from the United States government. 10 c. The recapture of awards or penalties, or other repayments 11 of moneys originating from the fund. 12 3. Moneys in the fund are appropriated to the division 13 exclusively to support soil and water conservation districts 14 in financing permanent soil and water conservation practices 15 within their districts on a cost-share basis as provided in 16 this chapter. 17 4. The moneys appropriated in this section shall be 18 appropriated to soil and water conservation districts according 19 to rules adopted by the division in accordance with policies 20 established by the committee pursuant to section 161A.4. 21 5. a. Notwithstanding section 12C.7, interest or earnings 22 on moneys in the fund shall be credited to the fund. 23 b. Notwithstanding section 8.33, unencumbered and 24 unobligated moneys remaining in the fund at the close of each 25 fiscal year shall not revert but shall remain available in the 26 fund. 27 6. This section is repealed on the date that revenues are 28 transferred to the natural resources and outdoor recreation 29 trust fund created in section 461.31 pursuant to section 423.2, 30 subsection 11, paragraph “b” , subparagraph (2). However, any 31 unobligated or unexpended moneys shall remain available to be 32 expended as provided in this section. 33 Sec. 2. Section 422.69, Code 2014, is amended by adding the 34 following new subsection: 35 -1- LSB 5364HH (5) 85 da/rj 1/ 6

H.F. 2322 NEW SUBSECTION . 3. a. Subsequent to the deposit of revenue 1 collected from income taxes imposed under division III to the 2 general fund, the department shall transfer ten percent of 3 such revenue to the Iowa conservation, outdoor recreation, and 4 economy fund created in section 461.41. 5 b. This subsection is repealed on the date that revenues 6 are transferred to the natural resources and outdoor recreation 7 trust fund pursuant to section 423.2, subsection 11, paragraph 8 “b” , subparagraph (2), and any remaining revenues that were 9 to be transferred prior to the date they are transferred as 10 provided in paragraph “a” . 11 Sec. 3. Section 461.31, subsection 2, paragraph a, Code 12 2014, is amended to read as follows: 13 a. (1) The trust fund shall be composed of moneys required 14 to be credited to the trust fund by law and moneys accepted by 15 a department for placement in an account established in this 16 subchapter and from any source. 17 (2) (a) The trust fund shall also be composed of moneys 18 appropriated from the Iowa conservation, outdoor recreation, 19 and economy fund as provided in section 461.41. 20 (b) This subparagraph is repealed on the date that revenues 21 are transferred to the natural resources and outdoor recreation 22 trust fund pursuant to section 423.2, subsection 11, paragraph 23 “b” , subparagraph (2). 24 Sec. 4. NEW SECTION . 461.41 Iowa conservation, outdoor 25 recreation, and economy fund. 26 1. An Iowa conservation, outdoor recreation, and economy 27 fund is created within the state treasury under the control of 28 the department. 29 2. The fund is composed of moneys from public or private 30 sources, including all of the following: 31 a. Moneys transferred from the general fund of the state 32 pursuant to section 422.69. 33 b. Moneys available to and obtained or accepted by the 34 division from the United States government. 35 -2- LSB 5364HH (5) 85 da/rj 2/ 6

H.F. 2322 3. The revenues are transferred to the following specific 1 funds as follows: 2 a. Fifty percent to the natural resources and outdoor 3 recreation trust fund created in section 461.31. 4 b. Twenty-five percent to the water quality initiative fund 5 created in section 466B.45. 6 c. Fifteen percent to the soil and water conservation 7 cost-share fund created in section 161A.77. 8 d. Five percent to the watershed improvement fund created 9 in section 466A.2. 10 e. Five percent to the watershed conservation reserve 11 enhancement program fund created in section 466.5A. 12 4. This section is repealed on the date that revenues are 13 transferred to the natural resources and outdoor recreation 14 trust fund pursuant to section 423.2, subsection 11, paragraph 15 “b” , subparagraph (3), and any moneys remaining in the fund are 16 appropriated to the specific funds provided in subsection 2. 17 Sec. 5. NEW SECTION . 466.5A Conservation reserve 18 enhancement program fund. 19 1. A watershed conservation reserve enhancement program 20 fund is created within the department of agriculture and land 21 stewardship under the control of the department. 22 2. The fund is composed of moneys from public or private 23 sources, including all of the following: 24 a. Moneys appropriated from the Iowa conservation, outdoor 25 recreation, and economy fund created in section 461.41. 26 b. Moneys available to and obtained or accepted by the 27 division from the United States government. 28 c. The recapture of awards or penalties, or other repayments 29 of moneys originating from the fund. 30 3. Moneys in the fund are appropriated to the department 31 exclusively to carry out the purposes of the conservation 32 reserve enhancement program established in section 466.5. 33 4. a. Notwithstanding section 12C.7, interest or earnings 34 on moneys in the fund shall be credited to the fund. 35 -3- LSB 5364HH (5) 85 da/rj 3/ 6

H.F. 2322 b. Notwithstanding section 8.33, unencumbered and 1 unobligated moneys remaining in the fund at the close of each 2 fiscal year shall not revert but shall remain available in the 3 fund. 4 5. This section is repealed on the date that revenues are 5 transferred to the natural resources and outdoor recreation 6 trust fund pursuant to section 423.2, subsection 11, paragraph 7 “b” , subparagraph (2). However, any unobligated or unexpended 8 moneys shall remain available to be expended as provided in 9 this section. 10 Sec. 6. Section 466A.2, subsection 1, paragraph a, Code 11 2014, is amended to read as follows: 12 a. (1) A watershed improvement fund is created in the 13 state treasury which shall be administered by the treasurer of 14 state under the supervision of the watershed improvement review 15 board. Moneys in the fund are appropriated to the treasurer of 16 state for expenditure as authorized by the board to carry out 17 the purposes of this chapter . The fund shall include moneys 18 appropriated by the general assembly. The fund may include 19 other moneys available to and obtained or accepted by the 20 division, including moneys from public or private sources. 21 (2) (a) The fund shall also be composed of moneys 22 appropriated from the Iowa conservation, outdoor recreation, 23 and economy fund as provided in section 461.41. 24 (b) This subparagraph is repealed on the date that revenues 25 are transferred to the natural resources and outdoor recreation 26 trust fund pursuant to section 423.2, subsection 11, paragraph 27 “b” , subparagraph (2). 28 Sec. 7. Section 466B.45, subsection 2, Code 2014, is amended 29 to read as follows: 30 2. a. The fund shall include moneys appropriated by the 31 general assembly. The fund may include other moneys available 32 to and obtained or accepted by the division, including moneys 33 from public or private sources. 34 b. (1) The fund shall also be composed of moneys 35 -4- LSB 5364HH (5) 85 da/rj 4/ 6

H.F. 2322 appropriated from the Iowa conservation, outdoor recreation, 1 and economy fund as provided in section 461.41. 2 (2) This paragraph “b” is repealed on the date that revenues 3 are transferred to the natural resources and outdoor recreation 4 trust fund pursuant to section 423.2, subsection 11, paragraph 5 “b” , subparagraph (2). 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill provides that 10 percent of revenues from 10 corporate income taxes that are now deposited into the 11 general fund of the state are to be transferred to a new Iowa 12 conservation, outdoor recreation, and economy fund, and from 13 that fund are to be further transferred to a number of specific 14 funds, including the natural resources and outdoor recreation 15 trust fund (Code section 461.31), the water quality initiative 16 fund (Code section 466B.45), a new soil and water conservation 17 cost-share fund to support soil and water conservation 18 districts in financing permanent soil and water conservation 19 practices (new Code section 161A.77), the watershed improvement 20 fund (Code section 466A.2), and a new watershed conservation 21 reserve enhancement program fund (new Code section 466.5A) to 22 carry out the purposes of the conservation reserve enhancement 23 program (Code section 466.5). The bill provides that the 24 percentage of corporate income tax revenues will no longer 25 be transferred from the general fund of the state to the new 26 fund and that the new fund along with the other special funds 27 created in the bill will be eliminated upon the implementation 28 of Article VII, section 10, of the Constitution of the State 29 of Iowa. That provision requires the transfer of revenue 30 generated by an increase of up to three-eighths of one percent 31 imposed upon the retail sales price of tangible personal 32 property and the furnishing of enumerated services sold in this 33 state. Those moneys are to be distributed to various accounts 34 to support initiatives relating to soil and water conservation, 35 -5- LSB 5364HH (5) 85 da/rj 5/ 6